WhatsApp, Paypal inject funds into Gojek

Marco Green
June 3, 2020

GoJek told TechCrunch that Facebook and PayPal were participating in its ongoing Series F financing round, which brings it total raise-to-date to over $3 billion.

The company valuation of "just north of $10 billion" remains unchanged, said the source.

Technology giant Gojek has announced that American tech companies Facebook and PayPal have invested an undisclosed amount in its new round of funding, joining other high-profile global corporations such as Google and Tencent.

For Facebook, the deal with Gojek marks its first investment in an Indonesia-based business as it seeks to create new opportunities for businesses in the country, including through its popular WhatsApp service.

Since the new coronavirus made landfall in Indonesia, investment has been scarce for the country's startups, with some forced to take drastic measures to weather the storm.

However, investment from the two US tech giants show global investors remain keen to invest in the company to enlarge their footprints in Indonesia, the biggest market in Southeast Asia and the world's fourth most populous country.

The archipelago's internet economy was worth $40 billion in 2019, the biggest in the region, and is slated to rise to $133 billion in 2025, according to a report by Singapore state investment company Temasek and Google.

Since its launch in 2015, the Gojek app has helped bring hundreds of thousands of merchants onto its platform, giving them access to more than 170 million people across Southeast Asia.

"The COVID-19 pandemic has taught us that a resilient economy requires support from reliable digital infrastructure", said Gojek's co-CEO Andre Soelistyo in a statement on Wednesday.

The agreement with PayPal will see its payment capabilities integrated into Gojek's services.

For Facebook, which in April invested in India's top telecom operator Reliance Jio Platforms, backing GoJek unlocks a similar opportunity: Helping millions of small businesses - while finding a business model for WhatsApp, an advertisement-free instant messaging service it owns that is used by more than 2 billion users. "Through this cooperation, we can help millions of SMEs and their customers to join the largest digital economy community in Southeast Asia", said WhatsApp chief operating officer Matt Idema.

"Gojek has been active in supporting financial inclusion for SMEs, and we are proud to strengthen our collaboration through additional investments", said Jeffrey Li, vice president of Tencent Holdings and managing partner of Tencent Investment.

Other reports by Click Lancashire

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